Problem 1-11 For most products, higher prices result in a decreased demand, whereas lower prices result in an increased demand. Let d = annual demand for a product in units p = price per unit Assume that a firm accepts the following price-demand relationship as being realistic: d = 800 - 10p where p must be between $20 and $70. How many units can the firm sell at the $20 per-unit price? Round your answer to the nearest whole number.
Answers
Answer:
The firm will sell 600 units at $20
Explanation:
Giving the following information:
d = annual demand for a product in units
p = price per unit
d = 800 - 10p
p must be between $20 and $70.
Elastic demand
We have to calculate how many units the firm will sell at $20
d=800-10*p=800-10*20= 600 units
Answer:
Explanation:
The firm can sell 800 - (10 * 20) = 600 units at the $20 per-unit price.
The firm can sell 800 - (10 * 70) = 50 units at the $70 per-unit price.
Related Questions
Joe's Bottling Company provided the following expense information for July: Assemblyline workers' wages Depreciation on factory equipment Caps for bottles Plastic bottles Reconfiguring the assembly line Salaries of salespeople Customer support hotline Salaries of research scientists Delivery expenses Customer tollfree order line What is the total cost for the distribution category of the value chain?
A product normally sells for $200 per unit. A special price of $180 is offered for the export market. The variable production cost is $160 per unit. An additional export tariff of 10% of revenue must be paid for all export products. What is incremental net income per unit from accepting this special order?
Suppose that there are two goods, X and Y, that are competing for dominance in a market with network externalities. Furthermore, suppose that the market has chosen good X even though it is inferior to good Y and that the net benefits of switching from X to Y are $20 while the costs of switching are $30. If the market stays with good X, then __________________ has occurred. If the costs of switching were to fall to $15 and the market still stays with good X then ___________________________.
On January 1, 2020, the Carla Vista Company budget committee has reached agreement on the following data for the 6 months ending June 30, 2020. Sales units: First quarter 5,500; second quarter 6,600; third quarter 7,300. Ending raw materials inventory: 40% of the next quarter’s production requirements.Ending finished goods inventory: 25% of the next quarter’s expected sales units. Third-quarter production: 7,740 units. The ending raw materials and finished goods inventories at December 31, 2019, follow the same percentage relationships to production and sales that occur in 2020. 5 pounds of raw materials are required to make each unit of finished goods. Raw materials purchased are expected to cost $5 per pound. Prepare a production budget by quarters for the 6-month period ended June 30, 2020
Answers
Answer:
= $210,000
Explanation:
The question is to determine the income realized by Mr. James in 2019
The income is calculated as follows:
First, the basic information for calculation:
The Purchase price for the vacation house = $1,000,000
Spent Capital additions = $10,000
2019 worth of the house = $1,200,000
Secondly, based on the extracted figures, the income is calculated as follows
Income realised in 2019 = 2019 worth of the house - (Purchase Price - capital addition)
= $1,200,000 - ($1,000,000 - $10,000)
= $1,200,000 - $990,000
= $210,000
Final answer:
Mr. James did not realize any income from the increase in value of his house in 2019 for tax purposes as the house was not sold.
Explanation:
For tax purposes, income is normally the amount of money received for goods or services during a certain time period. However, any increase in the value of personal assets such as a house, also known as appreciation, is not counted as income until the asset is sold. So, in 2019, even though the value of Mr. James' house increased by $100,000, from $1,200,000 on January 1 to $1,300,000 on December 31, 2019, Mr. James would not have realized, or officially 'made,' any income from his home in 2019 unless he sold it. Therefore, for tax purposes, the answer is $0.
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Answers
Answer:
$10.98
Explanation:
Dividend per year;
D1 to D2 = 0
D3 = 1.25
D4 = 1.25 (1.21) = 1.5125
D5 = 1.5125 (1.21) = 1.8301
D6 = 1.8301 (1.08) =1.9765
Find Present values of each dividend at 18% required return;
PV( D1 to D2) = 0
PV( D3) = 1.25/1.18³ = 0.7608
PV( D4) = 1.5125 / (1.18^4) = 0.7801
PV( D5) = 1.8301 / (1.18^5) = 0.8000
PV( D6 onwards)
PV( D6 onwards) = 8.6393
Next, sum up the PVs;
= 0 + 0.7608 + 0.7801 + 0.8000 + 8.6393
= 10.98
Therefore, this stock is valued at $10.98
Answers
Answer:
4,494.68
Explanation:
Formula
Fc = Ic (1+i) ^ n
Where;
Fc= Final Capital
Ic= Inicial Capital
i= interest rate
n= period
In this particular case:
Fc = 1234 (1+0.034556) ^ 8 + 2345 (1+0.03456) ^ 6
Fc = 4,494.68
2. Incurred manufacturing overhead costs as follows: indirect materials $17,000 (including broom polish and specially crafted scissors to trim stray twigs), indirect labor $20,000 (Hansel and Gretel clean the shop and run errands for the elves), depreciation expense on equipment $12,000 (Broomhilda has multiple molding stations for each broom she creates), and various other manufacturing overhead costs on account $16,000.
3. Assigned direct materials and direct labor to jobs as follows:
Job no. Direct Materials Direct Labor
50 10,000 5,000
51 39,000 25,000
52 30,000 20,000
Required:
a. Calculate the predetermined overhead rate for September, assuming Broomhilda estimates total manufacturing overhead costs of $840,000 and direct labor costs of $700,000 for September.
b. Open job cost sheets for Jobs 50, 51, and 52. Enter the September 1 balances on the job cost sheet for Job 50.
c. Prepare the journal entries to record the purchase of raw materials, and the manufacturing overhead costs incurred during the month of March.
d. Prepare the summary journal entries to record the assignment of direct materials, direct labor, and manufacturing overhead costs to production. In assigning overhead costs, use the overhead rate calculated in (1). Post all costs to the job cost sheets as necessary.
e. Total the job cost sheets for any job(s) completed during the month. Prepare the journal entry (or entries) to record the completion of any job(s) during the month.
f. Prepare the journal entry (or entries) to record the sale of any job(s) during the month.
g. What is the balance in the Finished Goods Inventory account at the end of the month? What job(s) does this balance consist of? 8. What is the amount of over- or underapplied overhead? Prepare the journal entry to close this to Cost of Goods Sold
Answers
Answer:
Broomhilda
a. Predetermined overhead rate = overhead costs/direct labor costs
= $840,000/$700,000
= $1.20 per direct labor cost
b. Job Cost Sheets for Job 50 Job 51 Job 52
Beginning balances:
Direct materials $20,000
Direct labor $12,000
Manufacturing overhead $16,000
c. Journal Entries for the purchase of raw materials and manufacturing overhead costs:
Debit Raw materials $90,000
Credit Accounts Payable $90,000
To record the purchase of raw materials on account.
Debit Manufacturing overhead $65,000
Credit Raw materials $17,000
Credit Wages $20,000
Credit Depreciation expense $12,000
To record the manufacturing overhead incurred.
d. Debit Job 50 $21,000
Credit Raw materials $10,000
Credit Direct labor $5,000
Credit Manufacturing overhead $6,000
To record the assignment of direct materials, direct labor, and manufacturing overhead costs to Job 50.
Debit Job 51 $94,000
Credit Raw materials $39,000
Credit Direct labor $25,000
Credit Manufacturing overhead $30,000
To record the assignment of direct materials, direct labor, and manufacturing overhead costs to Job 51
Debit Job 52 $74,000
Credit Raw materials $30,000
Credit Direct labor $20,000
Credit Manufacturing overhead $24,000
To record the assignment of direct materials, direct labor, and manufacturing overhead costs to Job 52
e. Job Cost Sheets for Job 50 Job 51 Job 52
Beginning balances:
Direct materials $20,000
Direct labor $12,000
Manufacturing overhead $16,000
Direct materials $10,000 $39,000 $30,000
Direct labor $5,000 $25,000 $20,000
Manufacturing overhead $6,000 $30,000 $24,000
Total $69,000 $94,000
f. Debit Accounts Receivable $280,000
Credit Sales Revenue $280,000
To record the sale of goods (Jobs 49 and 50 for $122,000 and $158,000, respectively).
Debit Cost of Goods Sold $159,000
Credit Job 49 $90,000
Credit Job 50 $69,000
To record the cost of goods sold for Jobs 49 and 50.
g. Finished Goods Inventory balance = $94,000
This balance consists of Raw materials $39,000, Direct labor $25,000, and Manufacturing overhead $30,000 for Job 51.
h. The amount of over-or underapplied overhead:
Overhead incurred = $65,000
Overhead applied = $60,000
Underapplied = $5,000
Debit Cost of Goods Sold $5,000
Credit Manufacturing overhead $5,000
To close the underapplied overhead to the cost of goods sold.
Explanation:
Jobs 50 costs prior to September:
direct materials $20,000,
direct labor $12,000, and
manufacturing overhead $16,000
Total costs so far = $$48,000
Job 49 completed at a cost of $90,000
Beginning balance of Raw Materials Inventory = $15,000
Started Jobs 51 and 52, completed Jobs 50 and 51
Sold Jobs 49 and 50 on account for $122,000 and $158,000, respectively.
Additional events:
Raw materials purchased on account = $90,000
Manufacturing overhead incurred:
indirect materials $17,000
indirect labor $20,000
depreciation expense on equipment $12,000
Various manufacturing overhead = $16,000
Total = $65,000
Assignment of direct materials and direct labor to jobs:
Job no. Direct Materials Direct Labor Manufacturing overhead
50 10,000 5,000 $6,000
51 39,000 25,000 $30,000
52 30,000 20,000 $24,000
Estimated total manufacturing overhead costs = $840,000
Estimated direct labor costs = $700,000
Predetermined overhead rate = overhead costs/direct labor costs
= $840,000/$700,000
= $1.20 per direct labor cost
Answers
Answer:
APR is 17.16 percent
Explanation:
APR means annual percentage rate and is calculated annually.
APR = 1.43 percent * 12 months = 17.16 percent
Final answer:
The Annual Percentage Rate (APR) for a credit card that charges a monthly interest rate of 1.43 percent is approximately 17.16 percent. This is calculated by multiplying the monthly rate by the number of months in a year.
Explanation:
The Annual Percentage Rate (APR) is the yearly rate charged for borrowing and is expressed as a percentage that represents the actual yearly cost of funds over the term of a loan. The APR on your credit card takes into consideration a monthly interest rate, which in your case is 1.43 percent.
To calculate the APR, you need to multiply your monthly interest rate by the number of months in a year. Thus, 1.43 percent (or 0.0143 in decimal form) multiplied by 12 months gives you an APRof approximately 17.16 percent.
So, the APR on your credit card, if it charges you 1.43 percent per month, would be around 17.16 percent.
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b. The cash account balance is $4,050.
c. Outstanding checks totaled $1,240.
d. Deposits in transit are $1,690.
e. The bank service charge is $81.
f. A check for $76 for supplies was recorded as $67 in the ledger.
Answers
Answer and Explanation:
The preparation of the bank reconciliation statement is shown below:
Cash balance as per bank $3,510
Add: Deposits in transit $1,690
Less: Outstanding checks -$1240
Adjusted bank balance $3,960
Cash balance as per books $4,050
Less: Bank service charge -$81
Less: Check for supplies error -$9 ($76 - $67)
Adjusted cash balance $3,960
Therefore both the balances are matched
Final answer:
A bank reconciliation ensures agreement between a company's financial records and the bank's records. For Blossom Company, the reconciled balance for July 31, 2022, is $3,960, after taking into account outstanding checks, deposits in transit, bank fees, and a check discrepancy.
Explanation:
A bank reconciliation is a process that ensures a company's financial records are accurate and in agreement with the bank's records. For Blossom Company, let's start with both the bank statement balance and the cash account balance.
- The bank statement balance is $3,510
- The company's cash account balance is $4,050
Next, we consider the outstanding checks and the deposits in transit. These are transactions that the company recognizes, but the bank has not yet processed. The outstanding checks total $1,240 and the deposits in transit add up to $1,690. We need to subtract the checks from the bank's balance and add the deposits to the bank's balance:
New bank balance = $3,510 - $1,240 (outstanding checks) + $1,690 (deposits in transit) = $3,960
Next, we take into consideration the bank's service charges and any errors in the check record. The bank's service charge is $81, and a check recorded as $67 in the ledger should have been recorded as $76.
New cash account balance = $4,050 - $81 (bank service charge) - $9 (check discrepancy) = $3,960.
From our calculation, both the bank and cash balances match, so the bank reconciliation for July 31, 2022, for Blossom Company is complete, and the reconciled balance is $3,960.
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